Oil on the (downward slide) upward climb...

BlazeES said:
This post gets my vote for
"Post of the Day" ! :happy2:
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Thanks, Tony. This is a sensitive subject for me because I use a lot of fuel...at times.

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Nando.
 
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laatsch55 said:
John you don't understand the drivers behind oil prices. For this drop in prices, the gloomy INTERNATIONAL economic outlook is responsible. The pussies on Wall street are getting out of energy stocks and the speculators in oil futures are betting that oil consumption will flatten as the global economy contracts.

On the horizon, there is going to be an oil glut if the laws against exporting crude are not reversed. We are rapidly approaching the point where we will be producing more than we can refine, and with more borrels chasing only so many refineries the price of domestically produced crude will go down.
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Oh I understand all to well. Production will be cut in the middle east, blown up in Iraq and the refiners will switch from summer to winter blends and throw much more cpacity at heating oil hence reducing supply and escalating prices. Probably be a good time for half the refiners to do some refinery repairs and shut down half the capacity. There maybe an oil glut but don't expect that to directly effect prices.

I hope I am wrong but not betting the farm against higher prices. BTW I paid $2.79 per gallon today. Will Obama get credit for lowering prices? No so why did he get blamed a few years ago? :la:
 
Web Police said:
Oh I understand all to well. Production will be cut in the middle east, blown up in Iraq and the refiners will switch from summer to winter blends and throw much more cpacity at heating oil hence reducing supply and escalating prices. Probably be a good time for half the refiners to do some refinery repairs and shut down half the capacity. There maybe an oil glut but don't expect that to directly effect prices.

I hope I am wrong but not betting the farm against higher prices. BTW I paid $2.79 per gallon today. Will Obama get credit for lowering prices? No so why did he get blamed a few years ago? :la:
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It's well documented that the Obama Administration wants energy costs high, especially oil and gases, so they can ram-rod green energy. Be honest, they've been.

And the pump price is taking a serious clobbering; I'd recommend doing some research. $3.12 for regular where I purchase gas.

As mentioned before, The Saudis are taking a different tact: http://www.reuters.com/article/2014/10/13/us-oil-saudi-policy-idUSKCN0I201Y20141013
 
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Yep and as oil prices drop the sources that need $100 a barrel oil to be profitable will start producing less and less. US Shale oil comes to mind. The Saudis, Russians, Iraq, Iran. Nigeria, Venezuela and Libya need oil prices over $100 a barrel to break even, ok the Suadis only need $93 a barrel, but how long do you think they will go before they cut production?

I'll wait and see.
 
Web Police said:
Yep and as oil prices drop the sources that need $100 a barrel oil to be profitable will start producing less and less. US Shale oil comes to mind. The Saudis, Russians, Iraq, Iran. Nigeria, Venezuela and Libya need oil prices over $100 a barrel to break even, ok the Suadis only need $93 a barrel, but how long do you think they will go before they cut production?

I'll wait and see.
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The US Shale Oil (Tight Oil) is in play and putting pressure on OPEC.

http://blogs.reuters.com/data-dive/2014/10/08/is-opecs-clubhouse-heading-for-a-sinkhole/

Me too.
 
Shale oil requires 70-80 BBL to continue exploration. Horizontal drilling and massive frac jobs cost MILLIONS. Your typical Bakken well runs 5-6 million. John we only refine 60% of what we consume. We've had this discussion before. Maintenance is not done to spike prices, maintenance is done to keep the refinery running. Changing blends is due to the EPA. There's your conspiracy...
 
I'll believe it when I see it. I am hedging the market will correct itself. May take a 6 months or a year though.

You have to take some of what I say with a grain of salt, as I have sat in a refinery board meeting and they had interesecting diagrams of when maintenance and cutting production would prop up prices and needless to say they cose the optimum time fro mtheir perspective to do both. :blob8:
 
You are killing the IS black market as well, mind you and the Saudis are themselves betting that Europe and China will pick up the slack so they can work on VOLUME. This also puts heat on the Russians.

I am not sure you have this all figured out and that it's probably working for Obama, although in the opposite way you think it is.

Don't get on all those Hasenpfeffers losing their minds.
 
orange said:
You are killing the IS black market as well, mind you and the Saudis are themselves betting that Europe and China will pick up the slack so they can work on VOLUME. This also puts heat on the Russians.

I am not sure you have this all figured out and that it's probably working for Obama, although in the opposite way you think it is.

Don't get on all those Hasenpfeffers losing their minds.
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Exactly what I was thinking. ;-)
 
Your avatar runs forever and never gets anywhere, Web...she must be at Curves. Hey, there's one in Chaska!
 
$3.09/gallon at my usual filling station today :happy2: !
 
WTI drops below the $80 threshold this morning; regular unleaded at $2.99 at my usual watering hole which is pretty dang low for a Cali spot.
$75 a barrel is quite possibly the next point of real resistance for the foreseeable future.

Gas under three bucks a gallon is where it needs to be for some real economic boost and I think we are there into next year...
 
Below $79 today.

Start watching pump prices really start to slide, heading into the latter part of the month.
 
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